Markets & Finance

UBS Trims Advanced Micro Outlook

Analyst Tom Thornhill says he's cutting his estimates and target based on the belief that AMD will face increasing pricing pressure in its processor business, and more competition in its flash business. He notes rival Intel's accelerated x86-64 bit strategy is expected to have a competitive impact in the second half of 2004 and 2005. Also, he notes Intel's shift towards 90nm manufacturing, which should enable the company to lower costs, will enable Intel to use pricing as a weapon against Advanced Micro.